The kids aren’t alright – Economic health of Gen Z

Gen Zers have not had the opportunity to accumulate equity and housing wealth yet.

Unemployment is rising and wage growth is declining for young adults, which could have a long-term scarring impact. Weak labor market prospects and rising housing costs are causing more young adults to live with their parents.

The choice to not move out reduces spending on housing, transportation, and food.
We estimate that the cumulative impact is a 12bn annual drag on consumption.
An outsize wealth effect will continue to prop up spending by high-income consumers, but combined with depressed sentiment, it may prompt younger adults to be more cautious with their dollars.
Young workers are more vulnerable to economic downturns, and a weak labor market can have a lasting negative impact on wage growth and earning potential.